A report from South Korean news outlet Chosun Daily suggests that Topgolf Callaway’s major shareholders — BlackRock Advisors LLC, Providence Equity Partners LLC, and Thomas Dundon — are teaming up to offload their stakes and management rights, totaling over 33 percent of the company’s shares.
Allegedly, the plan involves splitting off the Topgolf business and selling the Callaway golf and apparel segment for a hefty sum of around $3 billion. Sources hint that a South Korean investment firm is the front-runner to secure the Callaway business.
In response to the buzz, Topgolf Callaway’s share prices surged in premarket trading, hitting a 2024 peak of $16.25 — an increase of over 11.5 percent from the previous day’s close.
Third major golf brand to become South Korean?
The potential sale comes on the heels of Topgolf Callaway’s stellar 2023 performance, boasting total sales exceeding $4.28 billion and a yearly profit of $95 million. With all business units raking in at least $1 billion in sales, Topgolf led the charge with $1.76 billion, fueled by the launch of 11 new venues in 2023 and plans for eight more this year.
Meanwhile, the Callaway brand dominated the golf equipment market in 2023, clinching top market share positions across various categories.
If the rumors hold true and Callaway falls into South Korean hands, it would mark the third major golf company under South Korean ownership, following Fila’s acquisition of Acushnet and Centroid Investment Partners’ purchase of TaylorMade.
